This week we’re focusing on the credit unions in Peer Group 5 that sit at the top of our most recent Credit Union Industry HealthScore metric. These “Top 5” institutions show an impressive ability to drive membership growth while maintaining above-average loan and deposit relationships. Read on for details.

The Top 5

Peer Group 5, which is defined as credit unions with assets from $100M up to $499M, is comprised of 1,056 credit unions with combined assets of $233B in assets. This equates to 16% of the total number of credit unions and 21% of total credit union assets. Considering its size it is critical to the health of the credit union community overall that Peer Group 5 credit unions remain healthy.

Here are the five healthiest credit unions in Peer Group 5, and also the HealthScore averages for the industry and for Peer Group 5 overall.

As noted, the table above includes average scores for the peer group and for the industry overall. Peer Group 5 generally outperforms the industry as shown in the comparison averages, but the five credit unions leading Peer Group 5 possess a greater degree of health than even their industry-leading peers. The table below sheds some light on Top 5 health drivers.

Score Comparisons

Credit Union

NW

RA

EX

EF

CO

DQ

LN

DE

LS

AG

MG

Industry

3.411

1.935

2.883

0.983

3.288

2.952

2.942

3.745

2.477

2.067

1.119

Peer Group

3.395

2.616

2.849

1.223

3.734

3.570

4.146

4.717

3.347

2.532

1.643

OKLAHOMA

5.000

5.000

3.000

4.000

4.000

4.000

5.000

5.000

5.000

5.000

5.000

STATE EMPLOYEES

5.000

5.000

3.000

2.000

5.000

5.000

5.000

5.000

5.000

5.000

3.000

DAY AIR

5.000

5.000

3.000

3.000

5.000

5.000

5.000

5.000

5.000

3.000

4.000

NORTHEAST COMMUNITY

5.000

5.000

4.000

3.000

5.000

5.000

5.000

5.000

5.000

3.000

3.000

ST. PAUL

5.000

5.000

3.000

3.000

5.000

4.000

5.000

5.000

5.000

4.000

3.000

Table Key:

NW: Net Worth performance score

RA: Return on Average Assets performance score

EX: Operating Expense performance score

EF: Efficiency performance score

DQ: Delinquency performance score

CO: Charge-Off performance score

LN: Loan Relationships performance score

DE: Deposit Relationships performance score

LS: Loan-to-Share performance score

AG: Asset Growth performance score

MG: Membership Growth performance score

The table above illustrates an interesting difference between the Top 5 and the rest of Peer Group 5. While all credit unions in the peer group tend to have a healthy level of member loan and deposit relationships, the Top 5 maintains the level of member relationship while also maintaining strong membership growth. In other words, these credit unions seem to have a knack for converting new members into full-fledged account holders – a skill not every credit union possesses.

As we have done in previous posts regarding industry leaders, we included links to each credit union in the first table. We encourage you to check them out … and note, as we have, that for some the competitive advantage driving such substantial performance is not due to industry-leading website design. We offer that as proof that putting your resources into the channels that nurtures relationships with your members and potential members is more important that whether you are online with the prettiest design.

We’d also like to note the impressive performance of GC client St. Paul Federal Credit Union. Congratulations!

Interested in your own credit union’s HealthScore? We offer custom reports for a nominal charge. Order your report today.

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About Glatt Consulting

We were founded in 2006 by long-time strategy consultant Tom Glatt, Jr. Since then we have emerged as a trusted resource within the credit union community, a firm to which credit union leaders turn when in need of distinctive, clear strategy and execution support.